Use the Equation for the Question(s) Below

question 23

Multiple Choice

Use the equation for the question(s) below.
Consider the following factor model:
E[R_s] - r_f = (E[R_Mkt] - r_f) + E[R_SMB] + E[R_HML] + E[RPR1 YR]
-The term measures the sensitivity of the securities returns to

• A) momentum.
• B) the overall market.
• C) book to market.
• D) size.

---

Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Raw Materials

Basic materials that are used in the production process to manufacture goods and products.

Manufacturing Costs

The total expenses involved in making a product, including materials, labor, and overhead costs.

Lot Ticket

A document prepared to show the movement of materials or products between departments. Also called move ticket.